A bounce back was already underway before the Retail Sales data hit. There was a brief spike higher in yield (lower in MBS price) immediately following the stronger-than-expected headline on the data, but negative revisions helped moderate the tone. Since then, we've drifted back toward the weaker levels of the day.

We're currently 4/32nds (.125) weaker in Fannie 4.0s (103-30) and 3 bps higher in Treasuries (2.854). There is no other significant data for the day, but Business Inventories at 10am can be a small market mover as it affects GDP.

Data Recap:

Retail Sales (full release)

Headline Sales +0.2 vs +0.1 forecast

November revised to +0.4 vs 0.7 previously

Excluding Autos +0.7 vs +0.4 forecast

ex-autos for Nov revised to +0.1 vs +0.4 previously

Our view of the market movement weighting vs the other 830am data: 9/10

A bounce back was already underway before the Retail Sales data hit. There was a brief spike higher in yield (lower in MBS price) immediately following the stronger-than-expected headline on the data, but negative revisions helped moderate the tone. Since then, we've drifted back toward the weaker levels of the day.

We're currently 4/32nds (.125) weaker in Fannie 4.0s (103-30) and 3 bps higher in Treasuries (2.854). There is no other significant data for the day, but Business Inventories at 10am can be a small market mover as it affects GDP.

Data Recap:

Retail Sales (full release)

Headline Sales +0.2 vs +0.1 forecast

November revised to +0.4 vs 0.7 previously

Excluding Autos +0.7 vs +0.4 forecast

ex-autos for Nov revised to +0.1 vs +0.4 previously

Our view of the market movement weighting vs the other 830am data: 9/10

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